WH Smith is still in profit despite sales on the slide

WH Smith continued to haemorrhage sales across its stores but still managed to turn a profit thanks to cost-cutting and selling more expensive goods with higher margins, the company revealed today.

The newsagent has seen shoppers desert stores for several years and this Christmas was no exception, with sales down 4% in the 20 weeks to January 18 compared with the same period last year.

However, total sales at its travel stores in airports and train stations were up 2% in total, an improvement on previous periods.

Chief executive Stephen Clarke said: “Airports have been performing particularly well over the period, especially in London and the South East.”He suggested that the better-than-expected travel results were down to more business customers, who tend to travel from Heathrow or Gatwick, while he hopes the summer will see a pick-up in families and leisure travellers.

High Street stores continue to suffer though, with sales collapsing 7%. Many customers have shunned the stores, which have become dowdy and unappealing. However, shareholders were unlikely to be disappointed at the company’s AGM today, as the share price has soared in recent years.

Clarke said that over Christmas former Manchester United manager Alex Ferguson’s autobiography was a big seller and sales at the company’s online card service, Funky Pigeon, rose 20%.